Stolen Property
We must admit that things get a little fuzzy here. For starters, if someone stole money, wouldn’t they get caught, and the money taken back? And if they didn’t get caught, it means they are secretive enough for the IRS to not know about their income. But the law says it loud and clear:
Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040.
The truth is there are few criminals who actually report their stolen goods on tax returns. Naturally, this is a way to get caught, so you’ll also have tax evasion added to your list of charges. Learn from the notorious gangster Al Capone, who served 11 years just for tax evasion!
